Study Guide for Final Exam
Definition of a
-“A contract is a promise, or set of promises, for breach of which the law gives a
remedy, or the performance of which the law in some way recognizes a duty”
Offer can only be accepted by performing an act. For example, if A says to
B, “If you get me a hot dog from the concession stand, I will pay you $10,” B can only accept by
performing the act of getting the hot dog. A promise is not acceptable.
- A promise may be accepted with a promise. Ex. If A says to B “If you
promise to go get me a hot dog in the seventh inning of the game, I will pay you $10,” the offer is
accepted when B makes the promise to get the hot dog at the time specified.
Elements of a contract
- A proposal to form a contract made by the offeror(party making the offer) to the
offeree( party to whom the offer is made) Usually a promise or commitment to do something or to
refrain from doing something in the future. AKA “Manifestation of willingness to enter into a
bargain, so made as to justify another person in understanding that his assent to the bargain is
invited and will conclude it”
- Offeree is the only one who can accept, once the offer is rejected it is dead and same
offer cannot be accepted later on by offeree.
- Basically the compromising aspect of the contract. Both parties must give up
Must be legal detriment on both sides for contract to be considered valid. Adults are
supposed to make their own bargains so court wont regulate that, except in cases of fraud,
misrepresentation, duress, or mistake in contract.
An offer is assumed Valid Unless…
It is oral and worth more that $500 or more than a year in the future, or land is being sold or an
interest in land is being sold, due to Statute of Fraud Limitations.
Definitions and if they are Void, Voidable, or Unenforcable.
- legal ability to bind yourself to a contract
-the key element is that the influence was so great that the testator (will writer),
donor (gift giver) or party to the contract had lost the ability to exercise his/her judgment and
could not refuse to give in to the pressure.
- the use of force, false imprisonment or threats (and possibly psychological torture or
"brainwashing") to compel someone to act contrary to his/her wishes or interests. If duress is used
to get someone to sign an agreement or execute a will, a court may find the document null and
- an error in comprehending facts, meaning of words or the law, which causes one party
or both parties to enter into a contract without understanding the obligations or results. Such a
mistake can entitle one party or both parties to a rescission (cancellation) of the contract.